PROPERTY AND EQUIPMENT

3 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

Property and equipment, net, consisted of the following (in thousands):



	March 31,			December 31,
	2019			2018
Land	$	377		$	377
Building	2,978			2,978
Machinery and equipment	33,591			33,087
Office furniture and equipment	1,767			1,687
Computer hardware and software	4,725			4,704
Leasehold and building improvements	10,086			9,953
Construction in progress	947			1,274
	54,471			54,060
Less accumulated depreciation	(38,960		)	(38,079		)
Total property and equipment, net	$	15,511		$	15,981

Depreciation expense was $1.0 million and $1.1 million for the three months ended March 31, 2019 and 2018, respectively.

The Company has subscription agreements whereby its instruments in inventory may be placed at a customer's location on a rental basis. The cost of these instruments is transferred to machinery and equipment and depreciated, typically over a 5 to 7 year period depending on the circumstance under which the instrument is placed with the customer. Our cost of instruments under operating leases as of March 31, 2019 and December 31, 2018, was $11.0 million and $10.8 million, respectively, before accumulated depreciation of $6.4 million and $6.1 million, respectively.